HARTFORD, CT) – Connecticut Office of Policy and Management (OPM) Secretary Jeffrey Beckham on Thursday sent the attached expenditure and revenue estimates to the State Comptroller regarding the state’s General Fund and Special Transportation Fund for Fiscal Year 2023. According to July’s monthly forecast from OPM, the final forecast for the fiscal year, the agency estimates that the FY 2023 budget will end the year with an operating surplus of $630.6 million, a $115.3 million decrease from our June forecast.
OPM projects the Budget Reserve Fund (BRF) will end FY 2023 with approximately $5.28 billion, or 23.9 percent of net General Fund appropriations for FY 2024. Since this will exceed the statutory 15% cap on the BRF for FY 2024, transfers to the State Employees’ and Teachers’ Retirement Systems totaling approximately $1.96 billion are anticipated when FY 2023 results are finalized this fall, resulting in potential savings of about $167 million per year for the next 25 years.
“Our state’s economy has remained strong through the fiscal year, contributing to an estimated surplus of $630 million. This combined with a projected volatility cap deposit of $1.3 billion, will result in an anticipated transfer of $1.96 billion towards the State Employees’ and Teachers’ Retirement systems, resulting in potential savings of about $167 million per year for the next 25 years. Paying down our unfunded liabilities reduces the state’s fixed budgetary costs, allowing us to deliver real financial relief to taxpayers and invest in essential services. During the Lamont administration, the state will have made additional pension payments of approximately $7.5 billion, resulting in cumulative savings of approximately $650 million each year over the next 25 years. This is made possible because of the fiscal guardrails that were enacted in 2017 and extended at the beginning of the recent legislative session,” said OPM Secretary Jeffrey Beckham.
Today’s letter is an estimate. Final numbers will be released after the books are closed in late summer or early fall.